Dear Monty: My backdoor neighbor is one of the more successful agents in our town, so we thought we would use her when we sell our house. We just found out that she is listing the house across the street from us, which is smaller but still in the same price range. Does that create a conflict? Would our interests be better served by choosing another agent?

Monty's Answer: The situation you describe is not a legal conflict, but it can create competing incentives that deserve scrutiny. Two similar listings represented by the same agent in the same price range raise questions about attention, prioritization and pricing strategy, but not always for the reasons consumers commonly hear.

Assumptions

I'm assuming:

— Both homes would attract a similar buyer profile

— Your neighbor-agent intends to keep both listings personally rather than referring one

— Your market is relatively active, with typical MLS exposure

What Consumers Rarely Hear About Incentives

Many consumers (and agents) believe that agents are strongly motivated by higher prices because commissions are based on a percentage. In practice, the incentives are much weaker. Commission splits with the brokerage, team structures and referral fee arrangements can dilute the listing agent's actual payout to a fraction of the headline commission. The difference between selling at $525,000 versus $540,000 may mean tens of dollars to the agent, not thousands.

This is one reason many agents unconsciously prioritize faster transactions over higher prices, an important fact to keep in mind when the same agent lists two similar homes side by side.

Another Often-Misunderstood Point

Based on this writer's experience, the likelihood that the listing agent will produce the buyer is less than 50/50. In most markets, MLS exposure brings other agents' buyers. The MLS agent pool is many times larger than one agent's personal sphere, so the listing agent may not have the best buyer. No matter who you list with, you will still be competing with your neighbor.

Your Strategic Options

Option 1: Hire your neighbor-agent but request a written plan explaining how she will avoid prioritizing one listing over the other.

Pros: Maintains relationships and convenience.

Cons: Her time and attention are inevitably divided, even with good intentions.

Option 2: Choose another agent entirely.

Pros: You gain singular loyalty and focus. No divided priorities.

Cons: Potentially awkward with a neighbor, though professionals typically understand.

Option 3: Ask the neighbor-agent to refer your listing to another agent within her brokerage.

Pros: Preserves neighbor relationships while eliminating the conflict.

Cons: She may decline because it reduces her revenue.

Option 4: Interview multiple agents, not for marketing plans, but for pricing. Most sellers naturally assume agents will agree on price. In reality, pricing opinions can vary dramatically, sometimes by 10-20% or more, because every agent develops their impression using a mix of intuition, comp selection and experimentation.

Pros: You'll see the price spread, identify outliers and anchor your expectations more accurately.

Cons: More work and time on your part.

How to Decide

If you sense even slight discomfort about fairness or attention, choose another agent. To help you choose, check out another Dear Monty column, titled "How to Pick a Estate Agent to Sell Your Home" at DearMonty.com. If you prefer the neighbor for relationship reasons, get written clarity on how she arrived at her price recommendation.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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